Get money-saving tips in your inbox.

Stay on top of personal finance tips from our money experts!

News & Resources

TD Survey Finds First Time Home-Buying Anxieties; Tips on How to Overcome Them

May 14, 2018
3 mins
A couple lean in to look at something on a laptop

As many already know, purchasing real estate isn’t as simple as purchasing milk from the corner store. Naturally, buying any home – let alone your first home – is a process that involves a substantial amount of decisions, paperwork, and money.

The results of a recent survey conducted by TD found that 56% of its 1,001 respondents aged 18 to 69 have reservations when it comes to purchasing their first home. According to the survey, respondents cited their biggest concern as the fear of missing an important aspect that is necessary in the home-buying process. Over 70% are concerned they will endure expenses they do not foresee, while 24% find it outright stressful, and 21% view buying real estate as understandably overwhelming.

But there are some ways to help offset these worries. You can make your real estate investment much more manageable by ensuring you owe little-to-no money elsewhere, understanding all of the expenses – big and small – that you may incur during the process, and, finally, selecting the right mortgage loan on your property to make payments as easy as possible. When thinking about purchasing your first home, here are some useful tips to ease the anxiety.

Resolve your debt

Experts suggest the best way to offset heightened emotions and worries when it comes to buying a home is to over-prepare financially. Yet, only 39%of survey-takers said they are trying to reduce their debt now before buying a home, and only 28% are trying to boost their credit score in advance of purchasing a home.

What most people should understand is that by minimizing the money you already owe to creditors, you will have a much easier time obtaining a mortgage from a credible lender. You’ll also be in a better position to make your regular mortgage payments and you likely won't find yourself in financial trouble moving forward. 

Factor in all of the costs involved

There are numerous expenses to consider when buying real estate – some of which you may not even think of if this is your first time buying a home. The down payment, deposit, appraisal, home inspection, mortgage default insurance, title insurance, home insurance, land survey, legal fees, warranties, closing adjustments, utilities, HST, land transfer tax, and property taxes… those are just a few of the costs that will come up in the process.

And depending on the house or condominium you buy, you may also need to budget for maintenance fees, renovations, repairs, new appliances, hook-up fees for services such as cable and internet, gardening, snow-plowing, and more. To help counterpoise some of these costs, however, you may be eligible for savings options such as the Home Buyer’s Plan, the Home Buyer’s Tax Credit, and the Land Transfer Tax Rebate. Inquire about these and other potential allowances with your financial advisor.

Choose the appropriate mortgage

Closed mortgages, open mortgages, fixed mortgages, variable mortgages, short-term mortgages, long-term mortgages – they all differ in small, but significant ways, and everyone views them differently.

That being said, you are certainly not alone if the different types of mortgages available confuse you. In fact, over half of TD’s survey respondents admitted they did not know which type of mortgage was best suited for them.

Mortgage brokers and other professional financial advisors are excellent resources to consult when it comes to selecting your mortgage. And good news – many financial institutions offer free consultations, so you have the opportunity to get multiple opinions and ultimately understand the best path to pursue for your individual needs.

And when it comes to finding the best rate, you also have the option of easily consulting online comparison services like RATESDOTCA. Not only do we provide you with full-fledged resources like our First-Time Home Buyers Guide, but we also compare the market within seconds to provide you with the best mortgage rates available.

Latest life insurance articles

10 Life insurance myths debunked
Life insurance is for someone older or has kids, right? Wrong. Let’s debunk life insurance myths and learn why everyone needs some form of coverage.
6 mins read
Do you need life insurance? A primer for Canadians
Life insurance isn’t a one-size-fits all solution. But if you have dependents, it can be an important financial safety net for those you love.
7 mins read
Why life insurance should be part of estate planning for new parents
Life insurance is one of the best ways new parents can protect their family and help loved ones in the event of your unexpected death.
5 mins read

Subscribe to our newsletter

Stay on top of our latest offers, relevant news and tips!

Thanks for joining!

You'll be hearing from us shortly - stay tuned.